ABI responds to draft Queens speech on Banking Reform Bill

Today's announcement in the draft Queen's Speech that the Government plans to further consult on the Banking Reform Bill is a positive move, says the ABI (Association of British Insurers).

Stephen Haddrill, the ABI's Director General, said:

"The announcement of further consultation is a sensible step. We need to get this right and this will allow valuable breathing space in the process to avoid rushed legislation which could have hurt London's financial standing.

"We do not feel that the first consultation proved the case for the `special resolution regime` as proposed. We also believe that a higher level of deposit protection,* and prefunding a deposit protection scheme, are not justified."

* The current level of protection of £35,000 covers 95% of all depositors